TC TP 2 Transitional Provisions

(1)

(2) Material to which the transitional provision applies

(3)

(4) Transitional provision

(5) Transitional provision: dates in force

(6) Handbook provision: coming into force

1

TC 2

R

Competent employees who carry on lifetime mortgage and home reversion activities

(1) This transitional provision applies:

(a) in relation to home reversion plans; and

(b) in respect of an individual employed by a firm at 6 April 2007, if that individual had before that date been assessed as competent by the firm in relation to:

(i) advising on lifetime mortgages;

(ii) designing scripted questions for use in non-advised sales to customers of lifetime mortgages; or

(iii) overseeing non-advised sales of lifetime mortgages.

(2) The firm in 1(b) will (subject to (4)) be deemed to have complied with TC 2.4.5 R in respect of activities carried on in relation to home reversion plans that correspond to those in (1)(b) provided that:

(a) the individual has been assessed as competent to apply the knowledge and skills necessary to engage in or oversee the relevant home reversion activity before 6 April 2007;

(b) the home reversion activity which the individual engages in or oversees continues to be the same, or substantially the same as that immediately before 6 April 2007; and

(c) the individual has not experienced any significant break of employment since the previous assessment.

(3) Any other firm which subsequently employs the individual in 1(b) will (subject to (4)) be deemed to have complied with TC 2.4.5 R (1)(b) provided that:

(a) the conditions in 2(b) and (c) are met; and

(b) the firm assesses the individual to be competent in accordance with TC 2.4.5 R (1)(a).

(4) If the individual has not passed an appropriate home reversions top-up examination before 6 April 2009, a firm in (2) or (3) will cease to be deemed to comply with TC 2.4.5 R in relation to that individual.

From 6 April 2007 for two years

Apply in relation to home reversion plans from 6 April 2007

2

G

Until 5 April 2009, a firm may rely on paragraph 1 to assess an individual as competent to:

(1) advise on home reversion plans;

(2) design scripted questions for use in non-advised sales to customers of home reversion plans; or

(3) oversee non-advised sales of home reversion plans,

if that individual had been assessed by the firm as competent before 6 April 2007 in relation to corresponding lifetime mortgage activities and the activity or role of that individual in relation to his home reversion activities after that date remains the same or substantially the same as it was prior to it.

After 5 April 2009 a firm may not rely on paragraph 1 to assess an individual as competent: the individual must be assessed as competent and must have passed an appropriate home reversions top-up examination if they are to continue to carry on a home reversion activity in (1), (2) or (3) after that date. If the individual has not passed an appropriate home reversions top-up examination before 6 April 2009, the individual must be assessed as competent and must have passed an appropriate examination on equity release if they are to carry on a home reversion activity in (1), (2) or (3).

From 6 April 2007 for two years

Apply in relation to home reversion plans from 6 April 2007

3

G

A firm which relies on paragraph 1 of this table in establishing the competence of an individual should have regard to TC 2.6. In particular, a firm should keep under review the status of an individual deemed competent under paragraph 1 and consider whether an individual may no longer be competent (for example in the light of repeated failures to pass an appropriate home reversions top-up examination).

From 6 April 2007 for two years

Apply in relation to home reversion plans from 6 April 2007

4

TC 2

R

Competent employees who carry on home reversion activities only

(1) This transitional provision applies:

(a) in relation to home reversion plans; and

(b) in respect of an individual employed by a firm at 6 April 2007 other than an individual described in paragraph (1)(b) of transitional provision 1.

(2) The firm in 1(b) will (subject to (4)) be deemed to have complied with TC 2.4.5 R in respect of:

(a) advising on home reversion plans;

(b) designing scripted questions for use in non-advised sales to customers of home reversion plans; or

(c) overseeing non-advised sales of home reversion plans,

provided that:

(A) the individual has been assessed as competent to apply the knowledge and skills necessary to engage in or oversee the relevant home reversion activity before 6 April 2007;

(B) the home reversion activity which the individual engages in or oversees continues to be the same, or substantially the same as that immediately before 6 April 2007; and

(C) the individual has not experienced any significant break of employment since the previous assessment.

(3) Any other firm which subsequently employs the individual in 1(b) will (subject to (4)) be deemed to have complied with TC 2.4.5 R (1)(b) provided that:

(a) the conditions in 2(B) and (C) are met; and

(b) the firm assesses the individual to be competent in accordance with TC 2.4.5 R (1)(a).

(4) If the individual has not passed an appropriate examination before 6 April 2009, a firm in (2) or (3) will cease to be deemed to comply with TC 2.4.5 R in relation to that individual.

From 6 April 2007 for two years

Apply in relation to home reversion plans from 6 April 2007

5

G

Until 5 April 2009, a firm may rely on paragraph 4 of this table to assess an individual as competent to:

(i) advise on home reversion plans;

(ii) design scripted questions for use in non-advised sales to customers of home reversion plans; or

(iii) oversee non-advised sales of home reversion plans,

if that individual did not carry out (and therefore had not been assessed as competent in relation to) lifetime mortgage activities prior to 6 April 2007 and the activity or role of that individual in relation to his home reversion activities after that date remains the same or substantially the same as it was prior to it.

After 5 April 2009 a firm may not rely on paragraph 4 to assess an individual as competent: the individual must be assessed as competent and must have passed an appropriate examination on equity release if they are to carry on a home reversion activity in (i), (ii) or (iii).

From 6 April 2007 for two years

Apply in relation to home reversion plans from 6 April 2007

6

G

A firm which relies on paragraph 4 of this table in establishing the competence of an individual should have regard to TC 2.6. In particular, a firm should keep under review the status of an individual deemed competent under paragraph 4 and consider whether an individual may no longer be competent (for example in the light of repeated failures to pass an appropriate exam).

From 6 April 2007 for two years

Apply in relation to home reversion plans from 6 April 2007